Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
Scotgold Resources ( LON:SGZ ) announced Tuesday it expects to receive a mining lease from the Crown for the Cononish gold and silver project in May this year.
A unanimous decision by the Parks Authority to grant planning permission was received in October and by bid-March, consultants AMC should have completed the project development study, the group, based in Sydney Australia, said in a quarterly update.
Approval for Britain’s only commercial goldmine was given in October despite opposition from environmental groups about fears for the Loch Lomond and the Trossachs National Park and tourist interests in the area. The mine is around 1 kilometre inside the park boundary.
It was the second time Sydney-listed mining company Scotgold had applied to mine gold and silver at the Cononish site, which it bought in 2007.
It was turned down in 2010 over concerns about waste – 400,000 tonnes will be produced over the mine’s 10-year life – and rehabilitation. Production could start early in 2013.
The project consists of the establishment of a small underground mining operation with associated processing facilities and infrastructure. It is estimated the mine would produce around 20,000oz of gold and 80,000 oz of silver annually, according to Scotgold.
Scotgold is also undertaking exploration activities on its land position outside the park at the River Vein prospect and at its Grampian gold project, regional fieldwork including ongoing stream sediment sampling continued over the three months to end-December 2011.
Reprocessing of British Geological Survey aeromagnetic and gravity data over areas of the Grampian project area is nearing completion and results are awaited, but permission for a new airborne magnetic survey has not been granted.
